FX.co ★ China 10Y Yield Falls as PBOC Stands Pat

China’s 10-year government bond yield fell to around 1.73% on Monday, extending the previous session’s decline as trading resumed after the holiday and investors absorbed the People’s Bank of China’s decision to leave key lending rates unchanged. The central bank held the one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5% for a thirteenth straight month, highlighting policymakers’ cautious stance as they attempt to support economic growth while maintaining financial stability. The economy continues to display uneven momentum: exports remain relatively resilient, but consumer spending and the property sector are still under sustained pressure. Although the central bank has reiterated its “moderately loose” monetary policy stance, markets increasingly expect Beijing to favor targeted stimulus measures over broad-based monetary easing in the coming months.